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tv   The Willis Report  FOX Business  April 6, 2013 2:00am-3:00am EDT

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to correct it. john: i am glad you're on board. now that you are libertarian, we just need to convince 7 billion other people. cabbie friday. thanks to both of you. ♪ gerri: hello, i'm gerri willis. tonight on "the willis report", uncle sam's a sticky fingers tapping into your retirement savings. why your ira and 4o1 ks the target. also, the new facebook phone gone too far? new concerns over your private life. and now that we have plenty of it, said the united states be exporting oil? should that resources be used at home first? we are on the case next on "the willis report." ♪
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gerri: tonight's top story, a raid on your retement. it is a pot of money totaling nearly 10 trillion, and it is yours. retirement accounts, iras, 401(k). i have warned in the past of the white house wants a piece of it. now that day has come. the president's new budget details are coming out, but it would limit the size of retirement accounts and expose more of your money to the tax man. it is an irresistible way washington can raise money. with us now, jonathan and judy. i will start with you, jonathan. the administration is shocked to find that people would save millions of dollars. does that mean they suld get it? >> well, it would seem that the administration would think that it is their money. this is wealth confiscation. i don't know what other way to put it. it is like america's version of the many cypress.
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accumulated assets. they tried to is save retirements, and the government will come along in in their words decide what is a reasonable level of retirement savings. no wonder so many people i talk to are looking to hide money from the government of weather in gold, coins, or anything else gerri: to that point we had of your message just saying, you know, now it's time to get a bigger mattress. but my money in my mattress. when you talk about limiting the amount of money, what they're talking about possibly according to one government official and reports we have been seeing, limited to 3 million because the thinking is, the brain surgery math, you could buy an annuity with 3 million that would pay out 205,000 every year, and that is the amount of money people should have in retirement, no more. more organization is against this. why? >> well, we are against it for a couple of reasons. obverses we just don't think it is appropriate to penalize
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people have been good savers. but even more than that, most of our members work with 401(k) retirement plans. and this is actually going to impact those, to in that win somebody is that $3 million limit that is a small business owner or decisionmaker, that is going to make them less likely to up contribute to the plant. right now nondiscrimination rules below lot of people across the board in all different income categories contributions that, frankly, they're going to lose out on when this becomes effective. it hits everybody. gerri: and to you, the average balance right now indicate to, less than 60,000. you know, we have a crisis. should it be government policy to take a piece of the by? >> i mean, did this incentivize saving, investing, oftentimes i
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think that government believes when you save money and invested it sits dormant in the ground somewhere. no, it is actually invested in companies and stocks and bonds and more wealth creation. unfortunately this is doesn't -- this incentivizing wealth creation and incentivizing dependency and really wealth evasion. the market isn't -- at an all-time high. basically wanng to somehow keep their money safe from government fraud. gerri: well, to you. the impact of capping balances would reduce them. people put less money in. a 11-24%. what do you think would be the net effect in your view? the practical effects of this policy of capping balances? >> people that have nowhere near that amount are still going to get reduced savings. so it is not -- the mistake is
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made over and over again is thinking that if you catch something for people that our business owners or have done well for themselves, it's not going to hurt anybody else. the way the rules work for employer based retirement plans, it will flow through and hurt other people. and we don't know all the details, but we know it will be bad. >> anytime government sets an arbitrary cap, the amt that has come back, only attracting the ridge. in my estimation $3 million in retirement accounts and a couple of years given the way that the dollar is falling is actually not going to be worth two months. this is a tremendous disincentive to wealth creation for folks at all levels. gerri: the last thing you want to do is discourage people from saving for retirement because we don't know if social security will be there. they call it the holy grail that the government wants to get its hands-on.
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thank you for coming on. pound the table. i don't know about you, but i want the government out of my pocket. thank you. now we want to know what you thk. should the government tax growth and retirement savings? log on to gerriwillis.com and vote on the right-hand side of the screen and i will share the results of the end of the show. on two are really tough story. i was shocked. the morning after pill to become an over-the-counter medicine like aspirin after court ruled making plan be available, brooklyn federal judge ordering the fda to make emergency contraception available without a prescription and without a point of sale or age restrictions within 30 days. the center for reproductive rights dubbing this decision as
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true victory for all women. should the 11-year-old girls have access to the morning after pill? joining me now, senior editor for town hall dot com. should they have access? >> they should not. this is a drug that pumps are teenagers full of very harmful hormones. the fact is that doctors admit because they have not studied the long-term effects of what taking plan be over and over again entails, they don't really know what the long-term effts are, but the short-term effects we do know him a very serious symptoms and this is a case where they are redefining the definition of a woman. al and a 11-year-old girl. and not to mention, this puts the government in between parents and teenagers. gerri: i want to pick up on a couple of days the you said. nausea, leading him. it is not a pretty scene. the real problem, now you agree with me on this.
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young women are increasingly using this as their form of birth control. so forget about the pill. people are not doing that. they're doing this. what do you think of that? is that a good idea? >> there are plenty of data that shows more access women have to plan b becomes more of a plan a and results in an increase in as tds which means we also have another health crisis on our hands outside of what peopl say is a problem with teen pregnancy and single woman had pregnancy. gerri: what would you say about the effects of this bill being available widely socially? will will be the effect in high-school all of the country? middle schools. >> i think the alarming thing about is is that this is going to give an opportunity to make you do not have good intentions in mind for our daughters and young girls and give them another opportunity to exploit
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them he. just take this bill. it's not a big deal. you can get it over the counter. don't worry. the fda says it is okay. once again, it takes the parent out of the equation, which is an important part money comes to teenage girls as young as 11 years old taking a pill that pumped their body full of formosa we don't even have the long-term effects of study with. i mean, we saw planned parenthood come out praising this ruling, but the fact is, they have been caught in a lot of abuse, covering of statutory rape. this bill being available will only result in more teeseven they are out there on their own. see says she does not like this policy. this is not what the federal government proposed. >> you cannot even go to cbs are walgreens and by as a grown adult without showing some kind of identification. you cannot bring cupcakes to
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school anymore. let's have an 11-year-old being allowed to purchase this hormonal drug with very serious consequences. gerri: well put. thank you for coming on. well, we have a lot more still to come. we are just getting started. including a medical student who plans to have solved the student loan debt crisis all by himself. may actually be engaging your privacy by tracking your every move. details coming up. ♪
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♪ gerri: have you heard about the new facebook phone?
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is not really a phony. it's more like a big application on an android phone. puts your feed on the main screen. new concerns about what that might mean for your privacy. joining me now from a senior edir for all things digital. now, we know that facebook has had its issues with privacy in the settlement back in august with the federal trade commission. more issues emerging that they could find themselves in trouble again. >> facebook does of a checkered past. do we change a privacy policy? more complicated and difficult for consumers to understand. clearly and simply. gerri: and they don't do that. they don't like the fact that there always changing the policies. beyond just the idea,.
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gerri: the fact that it tracks the everywhere you go. particularly with these new applications. >> welcome on febook in particular, he tell people what you're doing, or you're going, what restaurants you might check in at, something like that. that data can somehow be used. hey, why are you out drinking and are so much? gerri: al is facebook call me different from any other? >> that's what i can't quite figure out other than the fact that it is a little more tightly integrated with the operating system. my iphone, it can already be done. there is not a fundamental capability. all the activity tracking, were already pretty much there. gerri: i have to tell you, this big announcement yesterday, you
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would have thought we get a cure for cancer. it was underwhelmed. the people really understand the privacy tauruses? they get all excited. at the end of the day, you're opening the kimono of all of your private information. >> it is interesting the way consumers say when you ask them that they are concerned about privacy. the opposite direction. and i know what the data says. this is a policy. mess around with these privacy policies and the best, people get upset and pushed back. the push back carter and facebook. at various times. but they tend to take especially hard. gerri: less talk about this.
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one of the things you're going to have is eds and your home screen. >> already ebb -- apps already. they just voted appearing. in your feedback already a year from this will bring it directly to the home screen. that is part of be the play. gerri: that is a good thing. >> in theory the more facebook knows, apple would probably love toet in on this. a more than nobody the more they will show at the you're actually want to take advantage of, offers, deals. the funny thing is to not talking about are mobile phone for years and is just now beginning to happen. gerri: here it comes. but you for coming in. good to see you. have a great weekend.
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should the u.s. start exporting our oral? , next guest says he has it figured out. stay with us. ♪
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gerri: big government bureaucrats have not been able to do it, but one student from iowa says he has
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♪ gerri: uncle sam pushing loans of students across the country, but is doing anything to help our nation's college kids. one student is devising a one-of-a-kind plan involving the private market and many in washington is starting to take
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no. a medical student attending the3 university of iowa's college of medicine joins me with details. welcome to the show. no, i imagine that you probably have a lot of experiences in debt is your medical student. how did you get started down this road? >> thank you for having me on the show. this is a huge honor. and national medical student position. one of my platform ideas to help bring down the cost of tuition. ultimately there are two factors. you will have a high tuition or you have of high interest loan rate. so they went down and spoke with state legislators and astral we could do to help bring down the cost of tuition. clearly that was not going to go anywhere. he. gerri: they had other priorities. >> that's okay. so many projects that we have to work on. my idea, what if we go ahead and start talking about pard be.
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the interest-rate. word of medical students go? direct loans from the u.s. government. those interest rates are just under 7%, and it jumps up the just under eight. the average medical student is graduating with over $160,000 in debt which is just the average. red rating with well over 200k per year which is pushing a lot of students away from madison. gerri: what you were saying is really interesting. your solution is to find people who want to invest in new and lending money. let me ask you, why as an investor would i be willing to give you a loan for less, significantly less, particularly when i have to wait so long to get the money back? >> that's a great point. what if i could tell you, you're going to get a good return on your investment.
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you will also get some tax credits, and you will be helping of the future of medicine. i think those three reasons are great for any investor to want to get involved. gerri: i hate to break-in. wait. a lot of investors, what they want is return on their money. that is what they're looking for if the federal government and lenders are getting six, seven, eight, 9%, why would they settle for three? >> these other lenders, corporations getting money, but the average investor living down the street at the university of iowa, they're not even playing in that game. so money will be invested and loan that to students that is significantly lower rate. they will get all those returns. we are going to create a tuition bob structure. after 20 years the investor will get a 50% return. the coupon bond. after that it becomes a coupon bond that the student pays every
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month. saving the student 18%. by the 15th year 50 percent is generated which will go to the investor. gerri: that's a long time to wait. what is interesting, it really uses private wells to really go after this issue of college debt. i am sure there would be people out there willing to play that game and get involved, mostly because it is the charitable consequences of that cut the fact that it is helping people across the country what do you think of the present system? and curious to know what you say because you are involved? the present system of financing college debt. >> senator marco rubio has talked about it. there is a problem. that is how much we are paying, and we are almost guaranteed a job. are guaranteed a job. why are we paying that the? people are going into debt into
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their 30's and 40's causing a big issue. as we know, 32 million new patients coming into the health care system. gerri: not enough doctors. not enough doctors. people with that kind of dead put off getting married, having kids, buying homes. the sacrifices they have to make for that money huge. thank you for coming on. great to meet you. we will have you back. >> all right. promise. gerri: we get it. thank you. >> okay. thank you. gerri: coming up, as the of red on wall street. is this a sign of things to come? the u.s. is cooked the raising of the rate of oil-producing companies -- countries. should we start exporting more oil? our panel will weigh in coming up next. ♪
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hmm. [cell phone beeps]
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hey! [police whistle blows] [horns honking] woman: hey! [bicycle bell rings] turn here. there. excuse me. uh. uh. [indistinct announcement on p.a. system]
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so, same time next week? well, of course. announcer: put away a few bucks. feel like a million bucks. for free tips to help u save, go to ♪ feed the pig
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>> from the fox business studios in new york city, it's "the willis report" with gerri willis. ♪ gerri: i have a question for you should the u.s. export its oil? as our country's domestic up what goes up all over the country, many in the industry are pushing to ease the ban congress put in place way back in the 1970's. joining me now, the heritage foundation and global director of oil news at platz. i will start with you on set. we are creating more oil in this country. pitt is fantastic. why do we want to send it to other people? >> the main reason is because their is a disconnect between when the oil is produced, where is best refined and where it is consumed. so what matters is your net. the united states is a big country. oil comes in different types. some being produced down in
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south texas, where -- of equality that is better refined and other countries. we export to them and other countries and they reinforce them in exchange. what really matters is your net import dependence. it has gone down 3-$4 million a day. gerri: producing six and half million barrels per day. >> is more than that. closer to seven. gerri: exports are 60,000 barrels. come on. every president since abraham lincoln has said let's be less dependent on foreign oil. i exaggerate because we did not have cars. why would we export in a big way ? that is a competitive advantage. >> we can continue to import as well. as they said, our refineries are set up to refine different types of oil. and that benefits is
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overwhelmingly positive. we should do this. it mmans lower prices for the products that we pay from the countries we import. overwhelmingly then that benefits a positive. >> here is the big danger. there is an assumption that production will not be affected. if you go to the u.s. industry and say we're going to act in such a way that a thorough government will act in such a way to artificially depress the domestic price by banning exports, you cannot then assume that the level of capital investment will stay the same. gerri: people will stop. >> you would get a reduction in output and gain nothing. gerri: what does it do for consumers and price of the pump? and me, you were talking about this a moment ago, but it seems to me that want to come as a consumer, get the lowest price possible, lowest price main and mostroduction. >> and they will increase marginally, but that takes a static look of how markets work. as prices go up that will
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incentivize more production which will help drive down prices. the reason north dakota is booming his because of this massive energy production, and we should continue to expand, not artificially limited by putting caps and bans on exports the other day, the middle of this country we have accrued lead because of the a rise in output, primarily north dakota. the main delivery point. it is not enough pipeline capacity. crude prices in the middle of the country are significantly lower than the gulf coast which is not showing up at lower prices of the pop. that is a gigantic windfall. because the market for gasoline and dieselre tied to the global markets. the crude market is not because they cannot get to other parts of the globe. gerri: interesting. tell me about this, this issue
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for one second. we have increased production so much in this country. how much? where is it going? can we say that we rank among the top producers? >> we can. that is the great thing, and we are exporting more refined petroleum products. oil producers are finding a way around this because they're building miniature refineries. light crude oil we are producing in north cook dakota is so light, we are actually exporting some of that. the fact that this energy production has led to of a great revitalization of our manufacturing sector in certain areas and has led to incredible growth, this is astounding news and a bright spot in the gloomy economy. gerri: one more thing. this shocked me. saudi arabia is the largest and processor of gas, desel, and the petroleum. this big insulation.
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>> it has been around for a long time. gerri: and now it's not new to you, but it is new to our viewers. >> what is says is this, if you look at the balances of the imports and exports and the growing supplies, you could make a case that they like to be pushed out. but at a certain point it may become uneconomic. so much canadian crude. they will get it through the refinery. gerri: what do you have to say? >> we need export capacity. refineries are expensive. extremely time consuming. look at the regulatory process. the massive capital to invest. there is always a big deal that the u.s. is not built a new refinery, but they added capacity.
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if you put the same amount of capacity as in the refinery was the difference? gerri: of tell you, u.s. imports of crude oil have gone down. and that is good news. thank ou for coming on. great information. appreciate your time. >> thank you. gerri: it is time for this business day in history. way back in 1987, fox made its prime-time tv debut with its first show. the show immediately garnered attention and controversy for its risque content, and in 1989 and was the subject of a boycott. the network's signature show. even though it declined in ratings in may became a little but cartoonish and raise the longest running live-action comedy in the network's history here. today they continue to entertain is with shows like the simpsons and american idled. its prime-time tv debut today 26
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years ago. that does not seem possible. when we come back, in fashion with to break up designers and take a look at new handbags and jewelry. and today's jobs report as a sign that we're heading into a weak spring. the answer is coming up. ♪ this is america.
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gerri: breaking news just got. former news corporation president has bid about 500 million for the company. an online video streaming service. very popular. part of the whole story going on in television.
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hulu currently jointly controlled by news corporation and disney and we will bring you more details as we get it. did 500 million. lots of changes coming to your tv set, and we are covering all of it. let's talk about markets. they ended the week on the solid note. the dow falling as much as 170 points. the dismal monthly jobs report. the 88,000 jobs, left -- less than half expected. more than had have the people drop out of the workforce. the chief investment strategist for fulcrum securities. welcome back to the show. good to have you here. this has been the story over the past few years. is betting upstart to the year. it all falls apart. >> and for different reasons. this is another in a state of weak economic reports. the tax hikes and sequester cuts early in the year.
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you're right. very troublesome. gerri: that 88,000 in jobs. come on. a $13 trillion economy. that is all that we can do. >> well, there were some who glimmers of hope. revised. there is a chance that this number will be revised up. but still, on the surface it is a pretty pitiful number. gerri: you're talking about the economy. let's talk about markets. a lot of people look at what has gone on. this can't go on forever. >> i have been saying that. unsustainable. cannot have double-digit gains every quarter. especially in light of this. they will probably get more of a sideways to down market. the next -- i would say the spring and summer. investors need to be positioned a little bit for that
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gerri: takes the money of the table. >> i have not gone quite that far. shifting more to the defense of areas. maybe reallocating. gerri: let's talk about apple for a second. we have been talking about the company all week long. and sort of the people who have been brand loyal are kind of getting killed. whether you own the stock or the products, you are worried about what is going on. just this week the huge chunk of apple stock sold off, goldman has taken them off there preferred list. kendis stock? 423, but down from 700 unchanged >> we have had it on our top ten list. we ticket of several months ago. that is reaching a boil or it is cheap enough to sustain plan growth, is starting to look very
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attractive. we need to wait awhile longer on that, but its starting to look . gerri: the reality is there getting killed by samsung and there is huge pressure to discount products. that killed zero brain damage because i have a product. by far my tablet. no one else can emulated. not true anymore. >> you're right. but at some stock price is cheap enough. even if they are at this point in time or this juncture losing the competitive battle, this is a very cheap stock, probably selling at about ten times earnings. the growth rate, even the diminished growth rate might justify. gerri: as zero sum gain. always a big winner and a lot of followers. you have to be on board.
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>> the paradigm changes. gerri: constantly changing and up. and that is fascinating. thank you for coming on. great information. appreciated. have a great weekend. still to come, "2 cents more" on an important day this month. breaking into the fashion business next. to fresh designers who are doing just that. in fashion after the break. ♪ .
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gerri: in fashion with to up-and-coming designers to tell us the best ways to break i
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♪ gerri: end-in, breaking into the fashion industry. there is no such thing is becoming an overnight success, especially in this business but recreating a fashion company is full of long hours to one knocking on doors, and persistence. with more on this, a jewelry designer and founder of lou frost. welcome to you both. i will start with you. you have been in the business lagered. how did you break-in? >> i get lucky. i like to the mantra that success is opportunity plus prepared this coming together which has worked well for me. i have an antique jewelry bone in my body. my grandmother was in the antique jewelry company.
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gerri: you name your company in part for. >> and that's right. gerri: so your handbags, you even brought a real python to show us. >> i brought us again. what it looks like before we make beautiful bags out of it. gerri: this is so cool. >> handpainted and handbag in europe. it is beautiful. you will see house of the skin is. sanded down and painted on top. gerri: where do you sores this material? >> at travel to exotic skins fares in europe twice a year. that is where i do a lot of my buying. and i work one-on-one with tanneries to customize colors and textures and feels. gerri: how many stores? >> over 25 luxury boutiques nationwide. gerri: to very young women breaking into this business that is highly competitive. what do you tell people who come to you and ask how you do it?
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>> the most important thing is if you have the passion for it to work at it every single day. sometimes these big goals like getting into 25 stores are 100 stores seems so far often impossible. if you're accomplishing something small every day that zepa. gerri: you are from texas. tell me how you came to this point? >> i wanted to be in fashion since i was small. i work my way through a bunch of different companies. just about a year-and-a-half ago i decided it was time. i had a clear vision of what i wanted the brand to be. it was important to me that it be made in the usa. that was one of the first things i was looking for, the right factory in a production. gerri: you make it here in new york city. >> yes. gerri: what did you start with the clutch? >> that as well as looking for,
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but it would start as a great day-bag, but lso turned into night because living in new york that was my lifestyle. gerri: show us the interior. >> there is a surprise. one of my favorite colors is a bright orange. every bag is lined in orange lambskin leather which is the signature you will find. a little pot of color. gerri: when you design these bags, do you do it on a computer, stepped up by hand? >> everything i do is hand sketched which was important to me because i think the final product turns up to the organic and natural and not so stiff a contrived it. gei: tell me about your collaboration. >> an amazing journey. >> wearing one of the new pieces gerri: we have this incredible piece. some of this is 100 years old. >> that's right. i call it the 100 your necklace, and each element is a range of a century of history. pieces from 1860 pre-1967.
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gerri: only one of these. >> well, all different ones. the concept remains the same. different one-of-a-kind elements gerri: you are also mentioning apiece over year in gold. >> these are amazing. replicas of the plaza hotel room numbers. with the closed for renovation i get all the raw numbers of the doors in turn them into pendants. this has been one. very personal and tells a story. gerri: what kind of hard lessons that you learn along the way of making money and not just pretty designs. >> that is a huge aspect of my business that has been transforming it from a creative designer into truly being an entrepreneur and focusing on building up a step in treating them as myself. they are so crucial to our success. building a pentium is one of the first set switch can just be one person who helps you make sure
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airbills are paid on time. gerri: what do you focus most fun? >> right now 75 percent is focused on business. i have to survive. at the end of the day this has to be a business. 25 percent of it is when i am actually more free. everything is kind of closed. and not getting flooded with e-mails. gerri: thank you for cing down. great job. interesting stories. fun to hear. i know a lot of young women like to hear them as well. thank you. we will be right back with my answer to our question of the day. should the government tax growth and retirement savings? ♪ úúúúúúúúúúúúúúúúúúúúúúúúúúúúúúú
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gerri: president obama soon-to-be released budget calls for attacks with uncle sam going after the ira for the wealthy. to the government tax growth and your retirement savings? here is with some of your posting on m facebook page. absolutely not. haven't they already taxed it? and mike degrees, they should tax the growth and their audacity. love that. 2 percent said yes, 98 percent said no way. here are some of your e-mails. dominick from pennsylvania rights, my wife and i watch your show all the time. what separates you from the others is her talent for getting right down to the root of the issue. you are like the tomahawk missile of reporting. the new lock on to what the story is really about your hit the bull's-eye every time. thank you for helping us focus on what is important on today's topics. is that dominick, mother? thank you. that was really nice. bob from texas, was that a budget that the president, -- without a budget they're useless. when will we wake up to the back
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of the wrong people are in office. we love hearing from you. send me an e-mail. gerri@foxbusiness.com. finally tonight, mike "2 cents." on the same as putting you to work and extra five days just to pay off your taxes, tax freedom day on april 18th is the day when the nation has earned enough money to pay off the total tax bill for the year. now, this break-even point has been pushed back every year since president obama took office. the tax foundation says you will pay more in taxes this year than you spend on food, clothing, and housing combined. americans worked 40 days to pay off federal, state and local income taxes with the total pot adding of over $4 trillion. the new payroll taxes would require another 24 days of work plus 15 days for sales and excise tax, 12 days for property taxes, and nine days for corporate income taxes. what about our federal budget deficit to evacuate after work until may 9th to close the gap. look, if uncle sam really want
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